Inventory Control Q&A Inventory Control Q&A Test Your Knowledge of Inventory Control!Take this quick MCQ quiz to assess your understanding of inventory control techniques, types, and strategies used to manage stock efficiently in businesses. Perfect for students and professionals looking to sharpen their supply chain skills. 1 / 20 1. Which of the following best defines inventory control? Maximizing sales by reducing staff hours Managing the flow of goods into and out of a business Designing the layout of the store Scheduling employee work shifts 2 / 20 2. What is the main objective of inventory control? To increase production volume To reduce taxes on products To maintain optimal inventory levels to meet customer demand To automate every part of the business 3 / 20 3. Which of the following is a type of inventory? Vendor agreements Raw materials Customer feedback Purchase orders 4 / 20 4. FIFO in inventory control stands for: Final In, Final Out Free In, Free Out First In, First Out Fast In, Fast Out 5 / 20 5. Which technique is used to categorize inventory based on value and usage? ABC Analysis EOQ JIT LIFO 6 / 20 6. What does EOQ (Economic Order Quantity) primarily help with? Determining minimum selling price Optimizing workforce Setting profit margins Minimizing total ordering and holding costs 7 / 20 7. In which inventory system are goods purchased only when needed? EOQ JIT (Just-In-Time) FIFO Batch Ordering 8 / 20 8. LIFO (Last In, First Out) is commonly used in: Electronics and Oil Industries Agriculture Retail Fashion Stores Pharmaceuticals 9 / 20 9. Safety stock is maintained to: Improve the warehouse lighting Eliminate the need for forecasting Buffer against demand uncertainty Avoid discounts 10 / 20 10. A reorder point is triggered when: Inventory exceeds capacity New vendors are added New product lines are launched Inventory drops to a predefined level 11 / 20 11. Which software is most commonly used for inventory control in large organizations? Canva SAP Trello Grammarly 12 / 20 12. A real-world example of advanced inventory control can be found at: KFC Domino’s Amazon Fulfillment Centers IKEA cafeteria 13 / 20 13. Which of the following is a disadvantage of poor inventory control? Stockouts and excess inventory Higher brand value Increase in staff satisfaction Lower shipping times 14 / 20 14. Which of these is a non-perishable inventory where LIFO could be used? Fresh vegetables Smartphones Bread Dairy products 15 / 20 15. Which of the following is NOT a goal of inventory control? Reduce carrying cost Increase working capital lockup Improve order accuracy Prevent product obsolescence 16 / 20 16. Which factor most influences safety stock levels? Employee satisfaction Currency exchange rate Demand variability and lead time Brand popularity 17 / 20 17. In which case would a company use a perpetual inventory system? Where items are small and inexpensive When inventory is rarely updated When manual tracking is preferred When real-time inventory tracking is necessary 18 / 20 18. Which KPI is most useful to measure inventory control efficiency? Bounce rate Inventory Turnover Ratio Customer Return Rate Employee Attrition Rate 19 / 20 19. What is a key feature of the “Push” inventory control system? Based on real-time demand Stocks are replenished only after they are used Goods are produced in advance based on forecasted demand Inventory levels are ignored 20 / 20 20. What is the ideal outcome of effective inventory control? Optimal stock with minimal holding cost and no stockouts Increased inventory levels and higher expenses Improved product recall process Dependency on manual checks Your score isThe average score is 90% 0% Restart quiz
